"We think Palm investors should view this transition as a positive," wrote analysts at JPMorgan, the Journal reported. "We believe Mr. Rubinstein has been the guiding force behind the Palm Pre and the webOS."

The Pre has been greeted warmly by critics, but the new Palm – despite its sleek hardware – may not be enough to bring Palm back into the vanguard. The smart phone market is just too cluttered, and the Pre doesn't have the same robust applications ecosystem as the iPhone.